When the Bill Is Noted from the Notary Public: What It Means
When a bill is noted from a notary public, it indicates that the bill has been presented to the drawer (the person who wrote
the bill) for payment, but they have refused to pay or could not be located. This process is also known as “noting” or
“protesting” a bill.
Significance of Bill Noting
Noting a bill has several important implications:
- Proof of Dishonor: It provides official documentation that the bill was presented for payment and
dishonored (not paid). - Preservation of Legal Rights: It preserves the holder’s legal rights to recover the amount due from the
drawer or any endorsers (guarantors) of the bill.
Process of Bill Noting
The process of bill noting typically involves the following steps:
- The bill is presented to the drawer at their place of business or residence within a specified time frame.
- If the drawer is not present or refuses to pay, a notary public is called to witness the dishonor.
- The notary public prepares a formal protest (notarial certificate) that documents the presentation, dishonor, and
witnesses present. - The notary public affixes their seal and signature to the protest.
How to Handle Noted Bills as a Business
If you receive a bill that has been noted, it’s essential to take prompt action:
- Contact the Drawer: Reach out to the person who wrote the bill to determine why it was not paid and
resolve the issue. - Review Legal Options: Consult with an attorney to understand your legal options and pursue
appropriate remedies. - Keep Records: Retain all documentation related to the bill noting, including the protest and any
correspondence with the drawer.
Conclusion
Bill noting by a notary public plays a crucial role in protecting the rights of bill holders. When a bill is dishonored,
noting it preserves legal remedies and provides evidence of non-payment. As a business owner, it’s essential to understand
the significance of bill noting and take appropriate action if you receive a noted bill.
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